Varga puts 2013 GDP growth at 0.5%-1%

MTI – Econews

Wednesday, March 6, 2013, 12:15

Incoming economy minister Mihály Varga put Hungary's GDP growth in a range between 0.5% and 1.0% in an interview published in daily Magyar Hírlap on Tuesday. “Hungary's economic growth could reach 0.5%-1.0% this year, according to our expectations,” Varga told the paper. Credit has become cheaper because of the National Bank of Hungary's rate cuts, Hungary's risk premium has fallen and the labor market situation has improved, he said, citing indicators that support the forecast. The government's official projection for GDP growth in 2013 is 0.9%. But the European Commission said in a forecast in February that Hungary's economy would probably contract by 0.1% this year. Varga said the government could reconsider the need for a levy on banks if economic growth picks up. “If the Hungarian economy starts to grow, the necessity of the special tax can be considered,” he said. “There can be no growth without a well-functioning banking system,” he added.

Hungarian employers and unions reached agreement on minimum wage increases on Sunday, December 30, a day before the deadline. The sides agreed to raise the minimum wage for both skilled and unskilled workers by 8% from the start of 2019, and again by 8% in 2020, according to official government website kormany.hu.

The board of governors of the currently Moscow-based International Investment Bank (IIB) took a unanimous decision at a meeting on Tuesday to relocate the lenderʼs headquarters to Budapest, Minister of Finance Mihály Varga said in a statement on Wednesday, Hungarian news agency MTI reported.

Minister of Finance Mihály Varga said Hungary does not support what he described as a "concerning" proposal to establish a separate European Union budget for the eurozone at a meeting of EU finance ministers in Brussels on Monday, state news agency MTI reported.

The local unit of Germany’s Continental Tobacco inaugurated a HUF 1.1 billion expansion at its base in Sátoraljaújhely (257 km northeast of Budapest), with a HUF 544 million grant provided by the state, official government news portal kormany.hu reported.

Economic research institute GKI has raised its projection for this yearʼs GDP growth to 4.5%, up from 4.2% in an earlier forecast. Hungaryʼs GDP was up 4.7% year-on-year in Q1-Q3 2018, according to preliminary data released by the Central Statistical Office (KSH) in November.

The government will discuss a package of proposals approved by the National Competitiveness Council on Monday at a cabinet meeting on Wednesday, Minister of Finance Mihály Varga told journalists after the councilʼs meeting, Hungarian news agency MTI reported.

Gross domestic product (GDP) in Hungary was up 4.8% according to raw data in the third quarter of 2018, compared to the corresponding period of the previous year, shows a flash estimate from the Central Statistical Office (KSH). Most industries contributed to the growth, market-based services to the greatest extent.

Minister of Finance Mihály Varga has recommended the appointment of Gábor Gion, a former executive at Deloitte, one of Hungary’s leading consultancies, as state secretary for financial affairs, official government news portal kormany.hu reported.